Rise in oil price to positively affect Eurasia project

The expected growth in oil prices in 2018 will positively affect the implementation of the Eurasia project, just as any other exploration project, Kazakh national oil and gas company KazMunaiGas told Azernews.

The implementation of this project will be carried out in accordance with the agreed terms, commercial conditions and in line with the current legislation, the company noted.

The estimated term of the work performance is estimated to take 67 years, according to KazMunaiGas.

Azerbaijan’s state oil company SOCAR, along with KMG Eurasia LLP, Agip Caspian Sea B.V., RN-Exploration LLC, CNPC International Ltd., and NEOS GeoSolutions, signed a memorandum of understanding (MoU) on implementation of the Eurasia project, which envisages development of the Caspian Depression in Kazakhstan on June 21, 2017.

Talks will be held on key commercial, technical and contract conditions of the Eurasia project for signing a contract for geological exploration of the Caspian Depression in line with the legislation of Kazakhstan.

SOCAR representatives are taking part in all meetings of the working groups, KazMunaiGas company’s representative stressed.

It was highlighted that all decisions on the issues related to Eurasia project are being taken unanimously with all potential participants of the project.

The volume of investments will be specified after negotiations, the company added.

Prospects of oil and gas content of sedimentary basins on the territory of Kazakhstan and, in particular, the Caspian Depression, are of great interest to the state and large international oil companies, KazMunaiGas underlined.

The Caspian Depression is a lowlying flatland region encompassing the northern part of the Caspian Sea, the largest enclosed body of water on Earth. Probable reserves in the Caspian Depression are estimated at 60 billion tons of oil. The project is expected to provide the oil and gas industry of Kazakhstan with a stable source, letting avoid the decline in production, which may occur in 15-20 years, and it will also become the foundation of the country's energy security.

The main purpose of the Eurasia project is to study the deep geological structure of the Caspian region with the aim of discovering new and large hydrocarbon deposits and establishing the regularity of their distribution at great depths.

Global oil production is likely to decrease in 15-25 years due to depleted reserves by that time. Kazakhstan’s giant oil fields - Tengiz and Kashagan - are among those fields that are predicted to see reduced output after 2040.

Therefore, new oil deposits need to be found and in this regards the perspectives of the Eurasia project cannot be overestimated.